Power BI Lesson 4: Measures vs Calculated Columns

📎 This article includes 2 downloadable practice files ↓

⏱ 2 min read

📘 Power BI & DAX Beginner Course · Lesson 4 of 10

In this article
  1. Calculated column
  2. Measure
  3. Which to use
  4. Why ratios must be measures
  5. Organise measures
  6. Where beginners go wrong
  7. Practice

DAX gives you two ways to calculate: calculated columns and measures. They look similar and behave completely differently. Knowing which to use saves hours of confusion.

Calculated column

Table tools › New column on the Sales table:

Line Amount = Sales[Qty] * RELATED ( Products[Price] )
  • Calculated once per row when data refreshes, and stored in the model.
  • Can be used in slicers, rows and axes.
  • RELATED fetches a value from the “one” side of a relationship, like VLOOKUP.

Measure

Home › New measure:

Total Sales = SUMX ( Sales, Sales[Qty] * RELATED ( Products[Price] ) )
  • Calculated when a visual needs it, for whatever filters apply: the whole year, North only, Laptops in May.
  • Not stored per row; takes no space.
  • Goes in the Values well of visuals.

Which to use

Use a column when… Use a measure when…
You need to slice or group by the result (Size band, FY) You want a number that sums, averages, compares
It describes a single row It depends on what’s selected
Example: Price band = IF(Price > 10000, “Premium”, “Standard”) Example: Total Sales, Margin %, YoY growth
💡 Default to measures. A ratio like Margin % must be a measure: summing a per-row percentage column gives nonsense totals.

Why ratios must be measures

If each row has a margin %, adding them across 600 rows gives thousands of percent. The right answer is total margin ÷ total sales for whatever is selected, which only a measure calculates correctly.

Organise measures

Create an empty table to hold measures (Home › Enter data, name it “_Measures”), then set each measure’s Home table to it. All measures appear together at the top of the field list.

Where beginners go wrong

Mistake Result
Percentage as a calculated column Totals wrong
Dragging a numeric column and accepting “Sum” Works, but implicit; write explicit measures
Hundreds of calculated columns Big, slow model; push row logic to Power Query

Practice

Download the data model and expected results below. Load all four tables into Power BI Desktop and build this lesson’s steps; compare your numbers with the expected-results workbook.

📎 Practice files for this article

  • 📗
    Practice data model (Excel)Four tables: Sales (600 orders, FY 2024-25 and 2025-26), Products, Customers and a Calendar with FY columns.
    ⬇ XLSX · 40 KB
  • 📗
    Expected resultsThe values your measures and visuals should show.
    ⬇ XLSX · 7 KB

Free to use for learning. Files with macros (.bas) are plain text — import them with Alt+F11 → File → Import File, and always test on a copy.

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